Annual Report - MDA · Annual Report 2014/15 3 CHIEF OPERATING OFFICER’S LETTER OF TRANSMITTAL...

7-1715 St. James Street Winnipeg, MB R3H 1H3www.mda.gov.mb.ca | [email protected] Agency of the Manitoba Government

Annual Report2014/15

TABLE OF CONTENTS

MINISTER’S LETTER OF TRANSMITTAL .............................................................................................................................................................. 1

DEPUTY MINISTER’S LETTER OF TRANSMITTAL ......................................................................................................................................... 2

CHIEF OPERATING OFFICER’S LETTER OF TRANSMITTAL ..................................................................................................................... 3

STRUCTURE FOR OPERATIONS ............................................................................................................................................................................... 4

THE PUBLIC DISCLOSURE (WHISTLEBLOWER PROTECTION) ACT ................................................................................................... 5

MDA MISSION & VISION STATEMENTS .............................................................................................................................................................. 6

ORGANIZATIONAL GOALS ......................................................................................................................................................................................... 6

ORGANIZATIONAL VALUES ....................................................................................................................................................................................... 6

BACKGROUND ................................................................................................................................................................................................................... 7

AGENCY PRODUCTS ...................................................................................................................................................................................................... 7

AGENCY SERVICES .......................................................................................................................................................................................................... 8

MARKET SEGMENT INFORMATION ................................................................................................................................................................... 10

WAREHOUSE PRODUCTS – DISTRIBUTION INFORMATION .............................................................................................................. 11

2014/15 PROJECTS AND ACTIVITY STATUS HIGHLIGHTS .................................................................................................................. 12

1. HUMAN RESOURCES OVERVIEW ........................................................................................................................................................... 12

2. NEW AND GROWTH BUSINESS INITIATIVES OVERVIEW ............................................................................................................. 14

3. INTERNAL PROJECT INITIATIVES OVERVIEW ................................................................................................................................... 16

4. SUSTAINABLE DEVELOPMENT & GREEN INITIATIVES OVERVIEW .......................................................................................... 19

FINANCIAL OVERVIEW .............................................................................................................................................................................................. 20

APPENDIX A ..................................................................................................................................................................................................................... 23

Annual Report 2014/15

MINISTER’S LETTER OF TRANSMITTAL

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2

DEPUTY MINISTER’S LETTER OF TRANSMITTAL


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CHIEF OPERATING OFFICER’S LETTER OF TRANSMITTAL

June 19, 2015

To Our Valued MDA Stakeholders:

I have the distinct honour of presenting the Materials Distribution Agency’s (MDA) 22nd Annual Report as a Special Operating Agency.

MDA is the warehousing and distribution hub for the provincial government. The Agency has a multitude of business lines primarily focused on the distribution of goods and mail. With a centralized point of operation, MDA is able to offer its clients competitive pricing and substantive cost and resource savings. MDA adheres to all government procurement initiatives and emphasizes this to encourage client loyalty and growth.

MDA’s primary focus is to provide superior service and value added benefits that meet or surpass our client’s needs and expectations. We are proud of our role and performance and continue to look for ways to improve and expand.

MDA’s success is directly related to the partnerships it has been able to forge and secure. With its vast knowledge of the industry, the Agency is often called upon to develop logistics solutions for the benefit of its clients. This includes being able to react quickly to concerns and emergent issues. Stakeholders, such as Employment and Income Assistance Branch, Manitoba Textbook Bureau and The Office of Disaster Management, have realized substantial cost savings and benefited from the resources the Agency has made available.

MDA is grateful to its clients for their long standing loyalty and we look forward to developing new and innovative opportunities for them. MDA’s future is bright as it continues to offer excellent service and expertise, while creating an environment our clients want to be a part of.

On behalf of MDA and its staff, I would like to thank our clients for their continued support of MDA. The Agency is grateful not only for having the opportunity to provide provincial departments with distribution solutions, but also for their continued commitment and trust, which have enriched our relationships.

Sincerely,

Dave BishopChief Operating Officer – MDA


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STRUCTURE FOR OPERATIONS

Accountability Structure

As an organization within Manitoba Infrastructure and Transportation, MDA reports directly to the Assistant Deputy Minister, Supply and Services, and is held accountable to the Deputy Minister and Minister of Infrastructure and Transportation for operational and financial performance.

The Agency operates outside of the Consolidated Fund under the Special Operating Agencies Financing Authority (SOAFA), which holds title to the Agency’s assets, provides financing for operations, and is responsible for its liabilities. Governance and accountability are substantiated by MDA’s compliance with its Operating Charter, Transfer Agreement, Management Agreement, applicable General Manual of Administration policies, and by The Special Operating Agencies Financing Authority Act. Financial and operational information and requirements are disseminated to and from Treasury Board through an SOA coordinator at Treasury Board Secretariat.

The Accountability Structure Chart presented below outlines the current structure:

Legislative Assembly

Cabinet

Minister of Infrastructure& Transportation

Deputy Minister ofInfrastructure & Transportation

Assistant Deputy MinisterSupply & Services

Chief Operating OfficerMaterials Distribution Agency

Materials DistributionAgency

Accountability Structure ChartMarch 31, 2015

Treasury Board

Minister of Finance

Special Operating AgenciesFinancing Authority

Advisory Board


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Advisory Board

The Advisory Board for the Materials Distribution Agency meets as required to review the Agency’s financial and operating reports, the draft Business Plan, and any proposed changes to the Agency’s Charter. The Board’s members offer advice and direction on reporting and management issues of concern, and on short and long term strategic planning.

Members of the MDA Advisory Board, as of March 31, 2015, are listed below.

Members of the Advisory Board for Materials Distribution Agency

CHAIR Doug McNeil Deputy Minister Manitoba Infrastructure and Transportation

MEMBERS

Client Bruce Bremner Ian HasanallyRepresentatives Assistant Deputy Minister Assistant Deputy Minister Manitoba Conservation Administrative Services Division Manitoba Infrastructure and Transportation

Ex Officio Vacant (Acting rotation) David Bishop Assistant Deputy Minister Chief Operating Officer Supply and Services Division Materials Distribution Agency Manitoba Infrastructure and Transportation

Staff Representative Peter Roberts Logistics Coordinator Materials Distribution Agency

THE PUBLIC DISCLOSURE (WHISTLEBLOWER PROTECTION ACT)

The Agency confirms that there were no disclosures of wrongdoing that have been made to a supervisor or designated officer during the fiscal year under review.


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MDA MISSION & VISION STATEMENTS

Mission

MDA is committed to provide economical products, services and logistics solutions. We strive to meet clients’ needs which helps them focus on what they do best.

Vision

The Agency is a reliable source for diverse products and services and is committed to be the preferred public sector source for mail and material logistics solutions.

ORGANIZATIONAL GOALS

Employees – To increase employee job satisfaction and foster a respectful workplace.

Service – To sustain and improve client service by developing partnerships, setting standards and meeting or exceeding customer needs.

Growth – To grow business while maintaining or increasing overall government value.

Sustainable Development – To actively participate in government’s environmental initiatives by offering solutions to clients looking for ecologically friendly products and services.

ORGANIZATIONAL VALUES

The Agency supports its mission and vision statements with its operating values.

ReliabilityMDA:

• Continually improves all aspects of its organization• Provides consistent services• Establishes and follows standards• Does not make promises it can’t keep• Meets deadlines• Is fair• Demonstrates integrity


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TeamworkMDA:

AccountabilityMDA:

BACKGROUNDIn 1974, MDA was created to provide the government with centralized materials management for government departments, boards, commissions and agencies. It became an SOA in 1993. Postal Services was created in 1954 to provide government-wide postal services and became an SOA in 1996. The organizations amalgamated on April 1, 2005. MDA’s mandate is to cost-effectively meet the mail and materials distribution requirements of organizations within the broader public sector.

AGENCY PRODUCTS MDA bulk purchases a variety of commonly used supplies, and distributes these goods in smaller units as needed by its clients. These distinct product lines are listed below:

Commodities Line Items

Stationery and Office Supplies 1,186

Janitorial Supplies 406

Medical Supplies 1,546

Home Care Equipment 387

Office Furnishings and Furniture 337

Publications 320

Total Line Items 4,182

• Meets deadlines• Provides clients with quality assured goods• Saves government clients money• Strives to fully understand client needs

• Communicates• Is positive and recognizes achievements• Views each call as an opportunity• Values diversity of backgrounds and opinions• Creates and supports a common direction and common goals• Fosters a respectful workplace


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AGENCY SERVICES

MDA provides the following lines of business and related key services:

Mail ProcessingMDA processes different types of mail for clients. Mail staff:

The current cost to clients consists of actual postage and a separate processing fee which varies depending on type (i.e. metered or permit mail). Vendor rate increases will not automatically increase the Agency’s processing fee. MDA has other products, such as variable rate services, including Business Reply Mail, Returned Mail and Short Paid Mail where the rate does not remain constant.

Mail FinishingMDA provides clients with various types of mail finishing services, such as:

Current prices vary, both with type of activity (i.e. folding) and volume. MDA may offer high volume clients lower rates, but eligibility for this pricing is dependent on the quality of the clients’ printed materials.

Inter-Departmental Mail (IDM)Clients purchase Prepaid Labels in four denominations (Letter, Oversize Letter, Small Packet, and Parcel). Label fees are based upon the size of the item being mailed or the service provided. MDA IDM also offers Signature Service which provides clients with mail delivery confirmation.

Contract AdministrationMDA offers broader public sector clients access to volume-based contracted courier and parcel rates.

Digital PrintingMDA’s Variable Data Printing Service provides clients with “just in time” printing of electronic documents on high speed digital black and white printers that can be immediately transferred to the Finishing, Processing, and IDM lines of business. Pricing is on a per impression basis.

• Weigh and ascertain postage of standard and oversized mail through high speed mail machines

• Forward letter mail that exceeds the maximum dimensions or weight through one of two computerized shipping systems

• Process high volume mail through permit mail using pre-printed indicia on envelopes• Coordinate prepaid mailings through use of numerically controlled Canada Post envelopes

• Envelope addressing• Folding of printed material• Envelope insertion• Manual collating of items into kits or envelopes


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Home Care Equipment RentalMDA provides a comprehensive rental, repair and service program. The Agency receives, repairs and disinfects any damaged or non-functioning component before returning it to the active equipment rental pool. Periodic safety checks on equipment in the field to ensure items remain in good working condition are carried out as well, including electronically tracking equipment usage for the Employee and Income Assistance Branch (EIA) program.

Warehouse and Distribution ServicesMDA provides distribution services to other agencies and departments. This includes picking, packing and transportation for provincial, national and international distribution. These services are offered at very competitive rates and continue to show favourable growth for the Agency. Key distribution services include:

Janitorial and Stationery Products

Medical Supplies

Manitoba Textbook Bureau (MTBB)

Storage

• Wide range of janitorial and stationery items (currently 1,619 products)• 209 products are environmentally friendly (increasing annually)• Toner recycling program • Pricing is the same throughout the province and is competitive with private companies (three

independent audits were conducted and support claims that MDA is more cost effective than buying directly from retailers)

• Medical supplies for rural home care – Regional Health Authority, Health • Nutritional supplements and child care items – Employment & Income Assistance, Family Services • Lab & X-ray facilities – Diagnostic Services of Manitoba (DSM), Health • Health booklets/pamphlets – Health

• MTBB is an SOA that distributes textbooks and other school-related items• Work is year-round with a heavy order period between June and October

• Secure storage facilities are provided for government clients• Rates are well below private industry

• Significant cost savings and consistent positive client feedback• Furnishings that offices/workplaces no longer need are recycled to other offices or through

recycling companies

Office Relocation/Moving and Disposal Services


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• Timely and cost effective management of projects that are short in nature (3 – 12 months)• Example: Pandemic warehousing and distribution for the Office of Disaster Management• Example: Provincial Low Cost Bike Helmet Program

Provincial Vaccine Program

Special Projects

• Distribution of vaccines throughout the province on behalf of Manitoba Health. These vaccines must be maintained between 2 and 8 degrees Celsius at all times until consumed by the end user

• MDA is the first provincial entity to achieve GMP certification through Health Canada• Increased risk management control for products within this program

MARKET SEGMENT INFORMATIONTotal Revenue 2014/15: $25,600,000300,000

5,900,000

19,000,000

MB Government

Health Authorities

Federal

Municipal

400,000300,000


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WAREHOUSE PRODUCTS – DISTRIBUTION INFORMATION

Number of Orders 2014/15 2013/14 2012/13 2011/12 2010/11

Warehouse Orders 54,400 46,900 51,900 54,600 53,300

Equipment Orders 15,465 15,900 14,507 14,071 14,300

Mail Finishing Orders 3,995 4,230 3,950 4,150 3,700

Vaccine Orders 7,308 6,700 6,460 n/a n/a

Federal Mail Processed (pieces) 1.60 million 1.51 million 1.80 million 2.35 million 2.63 million

Inter-Departmental Mail (pieces) 258,000 161,000 318,000 347,000 339,400

Payroll Advice Letters 74,000 180,400 233,000 392,000 386,000

Manitoba Textbook Bureau Orders 13,963 10,320 11,944 10,345 11,855

Moves 725 697 654 638 724

Distribution of Products By Area 2014/15 2013/14 2012/13 2011/12 2010/11

Winnipeg 55% 54% 53.5% 54% 57%

Rural 45% 46% 46.5% 46% 43%

Delivery of Winnipeg Orders 2014/15 2013/14 2012/13 2011/12 2010/11

Regular (2 days) 92.5% 93% 91.9% 95% 95%

Same day 4% 4% 3.7% 2% 2%

Pickup 3.5% 3% 4.4% 3% 3%


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2014/15 PROJECTS AND ACTIVITY STATUS HIGHLIGHTS

1. Human Resources Overview

MDA has identified several internal areas which need to be improved. Improvements will take place using management recommendations, government initiatives and employee suggestions. This section will comprise MDA’s strategic human resource plan, tracking mechanisms and reporting on a quarterly basis to deal with these issues.

Safety Management Program

MDA management, the Supply & Services Safety Facilitator and the Safety Committee will develop an internal Safety Management Program to ensure all potential accidents are investigated and improvements implemented.

Strategy results:

Communication Improvements

Communication remains a concern for the Agency. Improvements made in 2014/15 will help to ensure morale and efficiencies remain high this fiscal year.

1. Hold a minimum of 10 meetings for each MDA area in the 2014/15 fiscal year, with minutes distributed to managers and the COO.

Strategy results:

Business Area Standard 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr TotalCustomer Serv. & Equipment 10/yr 3 2 2 3 10Contracts & Purchasing 10/yr 3 2 2 3 10Warehouse - Distribution 10/yr 3 1 2 3 9Warehouse - Mail Services 10/yr 3 1 2 3 9Finance & IT 10/yr 3 1 2 2 8

• The Supply and Services Division Safety Facilitator conducted a safety audit at MDA in the first quarter. Results were communicated to the Agency in the second quarter.

• MDA passed the safety audit and has made corrections resulting from the audit.• MDA’s safety committee has developed safety topics with training aids to be discussed in each

monthly area meetings.


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3. Hold two meetings with all staff in fiscal year 2014/15 to update staff on business initiatives, new policies, MDA’s financial situation and answer questions.

Strategy results:

Quarterly Newsletter

A quarterly newsletter will continue to be developed and distributed to all MDA staff.

Strategy results:

Wellness Plan

To be an employer of choice, MDA must reflect the population it serves and provide a positive workplace environment. With an aging employee base, the Agency is experiencing higher absenteeism, increased health concerns and a need to accommodate staff while remaining attractive to potential employees. MDA has developed a plan for improvements to staff health. MDA’s Wellness Committee and management have identified the following plans:

• The COO gave opening remarks before the Respectful Workplace training sessions and answered questions.

• The COO conducted a meeting with all MDA staff at the Employee Appreciation awards in June 2014.

• The COO spoke to staff and gave updates on business projects in December 2014.

• Conduct an annual Wellness Fair in 2014/15• Organize employee tournaments in ping pong, cribbage and darts• Arrange for two healthy lunches and four healthy snack days• Track staff that use alternative travel methods to/from work and participate in the government’s

Commuter Challenge• Coordinate an internal recycling initiative

• Newsletters are being distributed quarterly and the feedback from staff has been very positive.

Strategy results:

• A healthy snack was arranged for staff in June for the Employee Appreciation Day • Held annual singles and doubles cribbage tournament• Held annual singles ping-pong tournament• A singles darts tournament was held

2. Conduct an employee survey in the first quarter, with a management review and implementation of recommendations in the remainder of the fiscal year.

Strategy results:• The employee survey was conducted in the fourth quarter. Results were very encouraging and

communicated to staff.• MDA management will work with staff on recommendations and ideas from the survey in fiscal

year 2015/16.


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2. New and Growth Business Initiatives Overview

MDA’s traditional clients continue to shop at alternate suppliers. MDA must implement more frequent communications to focus on the benefits, and dispel negative impressions associated with price, product availability and reliable delivery. This will include a combined strategic approach to market a full-service Agency featuring a wide range of products, not just stationery and janitorial supplies.

MDA is shifting towards being more sales focused in a traditionally finance-driven Agency. This shift will require dedication, persistence, and increased marketing-related activities to raise the level of exposure to new and existing clients. This section will comprise MDA’s strategic marketing and sales initiatives, tracking mechanisms and quarterly reporting requirements.

Mail Services

The MDA Mail area offers a variety of services such as printing, addressing, folding, inserting, mail processing and IDM delivery. MCG and MDA management will implement a communication strategy to increase client contact for this business line. Departments will experience significant cost savings by utilizing MDA for ID mail and mail processing.

Strategy results:• MCG will enhance client contact by arranging meetings with MDA’s top 10 clients in each mail

business area• An updated mail service guide and communications package was completed and distributed to

MDA’s top 20 clients in the first quarter

Office of Disaster Management (ODM)

In 2009/10, MDA partnered with the Office of Disaster Management to store, inventory and distribute pandemic supplies for the Province of Manitoba. MDA has entered into an agreement to continue this business until the end of fiscal year 2014/15. ODM requires ongoing management of the pandemic stock on behalf of the Regional Health Authorities past the next year. MDA will make a formal proposal to retain this business, and continue offering storage and distribution for the pandemic safety stock program.

Strategy results:

• MDA conducted meetings with representatives from ODM and determined that this program will be moved to MDA’s main location within the expanded space in units 1-3. This physical product move was completed in the second quarter

Departments of Family Services and Jobs & the Economy

MDA entered into a partnership with these two departments for medical supplies/equipment and nutritional supplements for the Employee Income Assistance Branch, Child Special Services and Community Living Disability Services programs. The Agency will track volumes throughout 2014/15 to verify the effectiveness of this initiative.


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Strategy results:• Sales by quarter are as follows:

Time Period Sales 2014/15 ($) Sales 2013/14 ($) Difference ($) Increase/Decrease Totals 4,777,700 3,269,500 1,508,200 46%

Marketing and Communications Group (MCG)

The Supply and Services’ MCG works closely with MDA management to source and implement many key business and communication initiatives. MCG is tasked with sourcing five new business opportunities in fiscal year 2014/15.

Strategy results:

Customer # Customer Name City

070270 TAXATION, ECONOMIC & INTERGOVERNMENTAL WINNIPEG 2014-04-30 46,164.18210235 HEALTHY SCHOOLS INITIATIVE WINNIPEG 2014-09-10 16,724.30500365 WRHA – DISASTER MANAGEMENT WINNIPEG 2014-05-06 16,532.10CFS21 EASTMAN CHILD & FAMILY SERVICES PINE FALLS 2014-10-02 4,184.6152145 HEALTH SERVICES WINNIPEG 2014-09-10 3,460.35040910 INDEPENDANT INVESTIGATION UNIT (IIU) WINNIPEG 2015-01-22 3,315.53030065 ALTONA GO CENTRE ALTONA 2014-05-15 2,546.80030080 GLADSTONE GO CENTRE GLADSTONE 2014-05-15 2,452.73030075 CARBERRY GO CENTRE CARBERRY 2014-05-15 1,677.08030090 ST PIERRE GO CENTRE ST PIERRE 2014-05-15 1,577.74880151 MAIN STREET PROJECT INC. WINNIPEG 2014-05-20 1,219.14880635 EAST SIDE ROAD AUTHORITY – WINTER ROADS LAC DU BONNET 2015-02-06 1,081.71140730 INFORMATION & PRIVACY POLICY SECRETRIAT WINNIPEG 2014-08-29 956.0954100 IERHA – PALLIATIVE CARE PROGRAM STONEWALL 2014-08-28 903.53810260 BAMBINI MONTESSORI PRESCHOOL INC. WINNIPEG 2014-06-10 840.09030085 VITA GO OFFICE VITA 2014-05-15 759.55880435 PINECREEK HEALTH CENTRE CAMPERVILLE 2014-08-20 617.4752802 CHEMAWAWIN HEALTH HOME & COMM. CARE EASTERVILLE 2014-09-04 471.10861511 CHIEF CHARLES AUDY SCHOOL BIRCH RIVER 2014-10-14 439.85810265 J A CUDDY CHILD CARE CENTRE INC. SANFORD 2014-08-29 424.81880153 MANITOBA PULSE GROWERS ASSOC. INC. CARMAN 2014-07-11 174.10300095 CHESTERFIELD SITE OFFICE WINNIPEG 2015-03-03 90.41880813 OPASKWAYAK CREE NATION CHILD & FAMILY SERVICES OPASKWAYAK 2014-11-03 87.44860690 TRANSPORTATION SAFETY BOARD OF CANADA WINNIPEG 2014-08-13 81.80500158 PACT WINNIPEG WEST WINNIPEG 2014-09-22 65.45500139 RIVER EAST PERSONAL CARE HOME WINNIPEG 2014-05-12 33.39 52146 CFS OF CENTRAL MANITOBA PORTAGE 2015-01-28 16.20Total 106,897.55

CreatedDate

TotalSales ($)

• Two new Inter-departmental clients were added• New sales customer listing is below:


Personal Care Homes

MDA will approach personal care homes throughout the province in regard to inventory management of medical equipment (e.g. beds, mattresses, lifts, etc.).

Strategy results:• For this new initiative, MDA conducted an assessment of all recycled equipment and will be

maintaining/distributing these items back to a main facility each month. The initial amount of product was large, but since then it has only been 1-2 pieces per month.

• This business has led to the Agency partnering with the Federal Government on medical supply distribution for northern nursing stations. Sales will be in fiscal year 15/16.

Manitoba Health

MDA has a strong partnership with Manitoba Health through the Provincial Vaccine Program. The Agency is being asked to look at the potential of providing distribution of products for the Provincial Sexually Transmitted Infection Program.

Strategy results:• A meeting was held with representatives from MB Health to explore this initiative in the second

quarter.• Rough financial numbers were provided to MB Health in the third quarter.• MDA will continue to work with MB Health in fiscal year 2015/16.

3. Internal Project Initiatives Overview

MDA management and staff identify key areas that need improvement, updating or removal each year. MDA reacts quickly to issues brought forth by staff, clients, vendors and management. These projects could be small (updating an existing SOP) or large (feasibility study of all mail satellite offices).

MDA has identified several important internal improvements that need to be completed in 2014/15. There may be additional projects throughout the year based on operational requirements and client needs.

MDA Website

Over the past three years, MDA has instituted a website to market its products and services. At this time, the website is static. The COO has tasked the Manager of Finance and Information Technology to create an easy to search and interactive website that can be updated with new products in real time. This will allow clients to utilize the website, instead of relying on printed catalogues and monthly flyers to update outdated information and products. MDA could reduce the amount of catalogues printed each year, save money and become more environmentally friendly.

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Strategy results:• The Finance & IT manager met and discussed options for MDA’s website with a representative from

Business Transformation and Technology (BTT).• BTT will work with MDA in fiscal year 2015/16 on implementation of a new website

Warehouse Space and Staffing Review

The Manager of Logistics will undertake an analysis to determine effective warehouse space usage and staff levels by business line. The findings will be presented to the COO. An action plan will be developed to reconfigure warehouse areas or examine possible synergies.

Strategy results:• Logistics Manager presented a plan which was approved by the COO.• Renovations and reorganization were completed in the second quarter.

Key Performance Indicators (KPI’s)

The COO has tasked each manager to review/develop KPI’s for their areas to confirm overall productivity and service levels are being achieved.

Strategy results:• Finance area: the performance is measured by reviewing the aging of the receivables and

payables. The sooner an organization collects receivables the easier it is to pay its creditors. The collection module improved the collection of receivables.

A/R A/Pcurrent

30–60

60–90

>90

current

30–60

60–90

>90

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Orientation Checklist

MDA has a comprehensive orientation checklist for new staff. This checklist needs to be customized for each area to ensure proper training is taking place. This will include agency operational and safety items as well as departmental information.

Strategy results:• TheAgencyhasimplementedMIT’sonboardingstrategy.Eachareawillcustomizetheir orientation checklist to ensure that required training/reviews are taking place.

Information Technology Projects

MDA relies on Great Plains Dynamics for ensuring clients’ needs are met. There are many small projects which occur throughout each year. These projects improve the information we can supply to clients and increase internal staff efficiencies. The following larger projects were identified for analysis and upgrades in the 2014/15 fiscal year:

• Shippinglabels–TheITareawillevaluatetheorderfulfillmentprocesstodeterminethefeasibility of having courier labels printing directly onto MDA’s labels• Rentalmoduleenhancement–IntegratewithGPcard,potentialautomationoftheserialnumber• UpdateMDA’sshippingsystem(Y2K)tocurrenttechnology• AssistinPanoramaorganization/logistics/liaisonetcwithMBHealth• Enhancemailserviceclientmaintenancemodule(willallowformoreefficientinvoicing,allow for easier changes to mail clients, etc.)

Strategy results:• Shippinglabelprocesschange–reviewin2nd quarter of 2015/16• Rentalmoduleenhancement–deferredto2015-16• UpdateMDA’sY2Ksystem–deferred• AssistinPanoramaorganization–completed• Enhancemailclientmodule–completed


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4. Sustainable Development & Green Initiatives Overview

MDA supports all government initiatives on sustainable development and green procurement. The Agency currently carries 250 products which are considered environmentally friendly. This number is steadily growing each year. Procurement Services Branch (PSB) continues to recommend MDA as a supplier of choice for many commodity lines.

MDA also provides disposal services on behalf of the Province to ensure that all items are re-distributed, recycled or disposed of in the proper manner, instead of being thrown into landfills.

Janitorial and Stationery Products

Each year, MDA works with clients to provide an enhanced line of environmentally friendly products. MDA’s target in 2014/15 is to obtain a minimum of 10 new green products to replace traditional items that are not environmentally friendly. In 2013/14, MDA procured 11 new environmentally friendly products. MDA will report on this initiative in the fourth quarter.

Strategy results:

• MDA replaced five products with environmentally friendly options in 2014/15


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FINANCIAL OVERVIEW

Review of Operations

MDA has seen the volume and breadth of products grow in most commodity lines. Current clients are ordering more commonly stocked products, while also requesting that MDA expand its lines of goods.As needs change, clients look to MDA to assume warehousing and distribution at lower costs.

MDA reported a net income of $41,000, compared to a projected net income of $0 for the year ended March 31, 2015, and a net income of $3,000 for the year ended March 31, 2014.

Warehouse Sales 14,330 14,310 20 12,805 1,525Service Revenue 12,011 11,309 702 11,598 413Total Revenue 26,341 25,619 722 24,403 1,938Salaries & benefits 5,084 5,538 (454) 5,031 53Cost of Sales 11,365 11,127 238 9,931 1,434Occupancy Costs 980 1,023 (43) 1,020 (40)Operational Costs 8,020 7,143 877 7,579 441Administrative Cost 651 588 63 639 12Revenue Share 200 200 0 200 0Total Expenses 26,300 25,619 681 24,400 1,900Net Income/(loss) 41 0 41 3 38

2015Actual

2015Budget

2015 Actualvs. Budget

2014Actual

2015 Actualvs.

2014 Actual

Sales and Revenue ($000)

Revenue

Net Sales


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Ratio Analysis

Ratio 2015 2014 2013 2012

Return on Total Revenue* .91% .83% .71% .71%

Days Sales in Receivables 26.7 days 34.7 days 46.9 days 32 days

Inventory Turnover 5.5 times 7.51 times 7.78 times 7.76 times

* before revenue share

MDA Performance Measures

* Internal Turn Around Times: 2015 2014 2013 2012

(In number of days)

Health Orders – Urban 1 1 1 1

Health Orders – Rural 1 1 1 1

Other Goods – Urban 1.5 1.5 1.5 1.5

Other Goods – Rural 1.5 1.5 1.5 1.5

MB Text Book Bureau 1 1 1 1

No. Sales Invoices 66,739 60,509 62,446 62,709

No. Inventory Items 4,182 4,245 3,570 3,835

* MDA internal processing time: Example – An order received at 11:00 am is processed, picked/packed and ready for shipment by 11:00 am the next day. The delivery time will be based upon the destination of the order and the courier schedule

Financial Position

The Agency did not use its working capital payable line of credit at any time during this fiscal year and has no working capital payable outstanding.

Remaining cash generated by operations was used to purchase capital and other.


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APPENDIX A

MATERIALS DISTRIBUTION AGENCY

FINANCIAL STATEMENTS

MARCH 31, 2015

INDEPENDENT AUDITORS' REPORT

To the Special Operating Agencies Financing Authority and Materials Distribution Agency Report on the Financial Statements We have audited the accompanying financial statements of Materials Distribution Agency, an agency of the Government of Manitoba, which comprise the statements of financial position as at March 31, 2015 and the statements of operations, change in net financial assets and cash flow for the year then ended, and a summary of significant accounting policies and other explanatory information. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with Canadian public sector accounting standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on the financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of Materials Distribution Agency as at March 31, 2015 and the results of its operations and its cash flows for the year then ended in accordance with Canadian public sector accounting standards.

June 9, 2015 Winnipeg, Canada Magnus Chartered Accountants LLP

MATERIALS DISTRIBUTION AGENCY AN AGENCY OF THE PROVINCIAL GOVERNMENT PROVINCE OF MANITOBA

Statement of Financial Position

(in thousands)

March 31, 2015 2015 2014 Actual Actual

Financial assets Cash and cash equivalents $ 1,045 $ 1,195 Accounts receivable (Note 4) 1,937 2,312 Portfolio investments 512 412 Inventories held for resale (Note 6) 1,505 1,290

4,999 5,209

Liabilities Accounts payable and accrued liabilities 2,613 2,325 Employee future benefits (Note 7) 736 713

3,349 3,038

Net financial assets 1,650 2,171

Non-financial assets Tangible capital assets (Note 8) 2,313 1,785 Prepaid expenses 242 208

2,555 1,993

Accumulated surplus $ 4,205 $ 4,164

Designated assets (Note 9)

Commitments (Note 10)

See accompanying notes to financial statements.


Statement of Operations (in thousands)

Year ended March 31, 2015

2015 2015 2014 Budget Actual Actual

Revenues: Warehouse sales (Schedule 1) $ 14,310 $ 14,330 $ 12,805 Service revenue (Schedule 1) 11,309 12,006 11,594 Investment - 5 4

25,619 26,341 24,403

Expenses: Cost of sales 11,127 11,365 9,931 Salaries and benefits 5,538 5,084 5,031 Occupancy costs 1,023 980 1,020 Operating expenses (Schedule 2) 7,143 8,020 7,579 Administrative expenses (Schedule 2) 588 651 639

25,419 26,100 24,200

Net income before transfer of funds to the Province of Manitoba (Note 11) 200 241 203 Transfer of funds to the Province of Manitoba (Note 11) 200 200 200

Net income for the year - 41 3

Accumulated surplus, beginning of year 4,049 4,164 4,161

Accumulated surplus, end of year $ 4,049 $ 4,205 $ 4,164



Statement of Change in Net Financial Assets (in thousands) Year ended March 31, 2015

2015 2015 2014 Budget Actual Actual

Net income for the year $ - $ 41 $ 3

Tangible capital assets Acquisition of tangible capital assets (1,035) (1,664) (1,027) Disposals of tangible capital assets - 74 -

Amortization of tangible capital assets 955 1,062 1,009 Net acquisition of tangible capital assets (80) (528) (18)

Other non-financial assets (Increase) decrease in prepaid expenses 50 (34) 56

Net acquisition of other non-financial assets 50 (34) 56

(Decrease) increase in net financial assets (30) (521) 41

Net financial assets, beginning of year 2,009 2,171 2,130

Net financial assets, end of year $ 1,979 $ 1,650 $ 2,171



Statement of Cash Flow (in thousands) Year ended March 31, 2015

2015 2014 Actual Actual

Cash provided by (applied to):

Operating activities: Net income for the year $ 41 $ 3 Adjustment for:

Amortization 1,062 1,009 Gain on disposal of tangible capital assets (Note 8) (11) -

1,092 1,012 Changes in the following:

Accounts receivable 375 (430) Inventories held for resale (215) 63 Prepaid expenses (34) 56 Accounts payable and accrued liabilities 288 158 Employee future benefits 23 62

Cash provided by operating activities 1,529 921

Investing activities: Change in portfolio investments (100) - Cash (applied to) investing activities (100) -

Capital activities: Acquisition of tangible capital assets (1,664) (1,027) Proceeds on disposal of tangible capital assets 85 - Cash (applied to) capital activities (1,579) (1,027)

Change in cash and cash equivalents (150) (106)

Cash and cash equivalents, beginning of year 1,195 1,301 Cash and cash equivalents, end of year $ 1,045 $ 1,195



Notes to Financial Statements (in thousands) Year ended March 31, 2015

1. Nature of organization

The Government of Manitoba established a central warehouse operation in 1974. Its mandate is to effectively meet the cost needs of departments and certain boards, commissions and agencies of the Crown, for a variety of commonly used items. Effective April 1, 1993, Materials Distribution Agency (the "Agency") was designated as a Special Operating Agency pursuant to The Special Operating Agencies Financing Authority Act, Cap. S185, C.C.S.M. and operates under a charter approved by the Lieutenant Governor in Council. In 1956, Mail Management (Postal Service) was created as a branch of the Manitoba Provincial Government to provide centralized postal services. Effective April 1, 1996 the Postage Service was renamed Mail Management Agency and designated as a Special Operating Agency (SOA) pursuant to The Special Operating Agencies Financing Authority Act, Cap. S185, C.C.S.M. and operates under a charter approved by the Lieutenant Governor in Council. Effective April 1, 2005 the operations of the Materials Distribution Agency and the Mail Management Agency were amalgamated. The amalgamated operations have been operating as the Materials Distribution Agency. The Agency is financed through the Special Operating Agencies Financing Authority (SOAFA). The Financing Authority has the mandate to hold and acquire assets required for and resulting from the Agency's operations and finances the Agency through repayable loans and working capital advances. This financial framework enables the Agency to operate in a business like manner according to public policy expectations. A Management Agreement between the Financing Authority and the Minister of Infrastructure and Transportation assigns responsibility to the Agency to manage and account for Agency-related assets and operations on behalf of the Financing Authority. The Agency continues to be part of Manitoba Infrastructure and Transportation under the general direction of the Assistant Deputy Minister, Supply and Services Division, and ultimately the policy direction of the Deputy Minister and Minister. The Agency remains bound by relevant legislation and regulations. The Agency is also bound by administrative policy except where specific exemptions have been provided in its charter in order to meet business objectives. Effective April 1, 2012 the Agency is administering the vaccine program on behalf of Manitoba Health.

2. Basis of accounting

These financial statements have been prepared in accordance with Canadian public sector accounting standards which are Canadian generally accepted accounting principles for the public sector as recommended by the Public Sector Accounting Board.



3. Summary of significant accounting policies

(a) Revenue

Warehouse sales

Revenue is recognized when the goods are shipped.

Service revenue

Service revenue is recognized when the related services are completed or substantially completed pursuant to the underlying contracts, where applicable.

Other revenue

All other revenues are recognized on an accrual basis.

(b) Expenses

Accrual accounting

All expenses incurred for goods and services are recognized on an accrual basis.

Government transfers

Government transfers are recognized as expenses in the period in which the transfers are authorized and all eligibility criteria have been met.

(c) Financial assets

Cash and cash equivalents

Cash and cash equivalents include cash on hand and short term investments and deposits with original maturities of three months or less.

Accounts receivable

Accounts receivable are recorded at the lower of cost and net realizable value. An allowance for doubtful accounts is recorded when there is uncertainty whether the amounts will be collected.

Portfolio investments

Portfolio investments are investments and deposits with original maturities of more than three months. These investments are recognized at cost.

Inventories for resale

Inventories for resale are recorded at the lower of cost or net realizable value.

(d) Liabilities

Liabilities are present obligations as a result of transactions and events occurring at or prior to the end of the fiscal year the settlement of which will result in the future transfer or use of assets or other form of settlement. Liabilities are recognized when there is an appropriate basis of measurement and a reasonable estimate can be made of the amount involved.



3. Summary of significant accounting policies (continued)

(e) Non-financial assets

Tangible capital assets

Tangible capital assets are recognized at cost. Cost includes the purchase price as well as other acquisition costs. The costs of tangible capital assets, less any residual value, are amortized over their estimated useful lives as follows:

Computer equipment 20% straight line

Furniture and fixtures 20% straight line

Leasehold improvements 10 years straight line

Office equipment 20% straight line

Production equipment 20% declining balance

Rental equipment 2 - 5 years straight line

Warehouse equipment 20% declining balance

Prepaid expenses

Prepaid expenses are payments for goods or services that will provide economic benefit in future periods. The prepaid amount is recognized as an expense in the year the goods or services are consumed.

(f) Financial instruments - measurement

Financial instruments are classified into one of two measurement categories: (a) fair value; or (b) cost or amortized cost.

The Agency records its financial assets at cost. Financial assets include cash and cash equivalents, accounts receivable and portfolio investments. The Agency also records its financial liabilities at cost. Financial liabilities include accounts payable and accrued liabilities.

Gains and losses on financial instruments measured at cost or amortized cost are recognized in the statement of operations in the period the gain or loss occurs. Gains and losses on financial instruments measured at fair value, if any, are recorded in accumulated surplus as remeasurement gains and losses until realized. Upon disposition of the financial instruments, the cumulative remeasurement gains and losses are reclassified to the statement of operations.

(g) Measurement uncertainty

The preparation of financial statements in accordance with Canadian public sector accounting standards requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingencies at the date of the financial statements, and the reported amount of revenues and expenses during the reporting period. Actual results may differ from these estimates.



4. Accounts receivable

Accounts receivable as at March 31 is comprised of the following

2015 2014

Trade accounts receivables $2,002 $2,377 Allowance for doubtful accounts (65) (65)

$1,937 $2,312

5. Working capital advances

The Special Operating Agencies Financing Authority has provided the Agency with an authorized line of working capital of $1,000 of which $nil was used at March 31, 2015 (2014 - $nil).

6. Inventories held for resale

2015 2014

Medical supplies $642 $563 Health Equipment 148 107 Stationary 508 402 Janitorial 203 215 Furniture 4 3

$1,505 $1,290

7. Employee future benefits

2015 2014

Severance benefits $666 $643 Sick pay benefits 70 70

$736 $713

Pension benefits

Employees of the Agency are eligible for pension benefits in accordance with the provisions of the Civil Service Superannuation Act (CSSA), administered by the Civil Service Superannuation Board. The CSSA established a defined benefit plan to provide benefits to employees of the Manitoba Civil Service and to participating agencies of the Government, including the Agency, through the Civil Service Superannuation Fund. Effective March 31, 2001, pursuant to an agreement with the Province of Manitoba, the Agency transferred to the Province the pension liability for its employees. Commencing April 1, 2001, the Agency was required to pay to the Province an amount equal to its employees’ current pension contributions. The amount paid for 2015 was $306 (2014 - $284). Under this agreement, the Agency has no further pension liability.



7. Employee future benefits (continued)

Severance benefits

Effective April 1, 1998, the Agency began recording accumulated severance pay benefits for its employees. The amount of the severance pay benefit obligation is based on actuarial calculations. The periodic actuarial valuations of these liabilities may determine that adjustments are needed to the actuarial calculations when actual experience is different from expected and/or because of changes in actuarial assumptions used. The resulting actuarial gains or losses are amortized over the expected average remaining service life (EARSL) of the related employee group. An actuarial report was completed for the severance pay liability as of March 31, 2014. The report provides a formula to update the liability on an annual basis. In accordance with the formula, the Agency's actuarially determined net liability for accounting purposes as at March 31, 2015 is $666 (2014 - $643), with the total net actuarial losses of $38 (2014 - $23) based on the completed actuarial reports being amortized over the 15 year EARSL of the employee group. Significant long-term actuarial assumptions used in the March 31, 2014 valuation, and in the determination of the March 31, 2015 present value of the accrued severance benefit liability, are:

Annual rate of return

Inflation component 2.00% Real rate of return 4.00%

6.00%

Assumed salary increase rates Annual productivity increase 1.00% Annual general salary increase 2.75%

3.75%

The severance benefit liability as at March 31 includes the following components:

2015 2014

Accrued benefit liability, beginning of year $649 $588 Actuarial losses 15 - Current service costs 30 22 Interest on accrued severance benefits 40 39 Severance benefits paid during the year (49) - Accrued benefit liability, end of year 685 649 Less: unamortized actuarial losses (19) (6)

Severance benefit liability, end of year $666 $643



7. Employee future benefits (continued)

The total expense related to severance benefits for the year ended March 31 includes the following components:

2015 2014

Interest on accrued severance benefits $40 $39 Current period service cost 30 22 Amortization of actuarial losses over EARSL 3 1 Total expense related to severance benefits $73 $62

Sick pay benefits

The Agency provides sick leave benefits for employees that accumulate but do not vest. The accrued benefit liability related to sick leave entitlements earned by employees is determined using a valuation model developed by an actuary. The valuation is based on employee demographics, sick leave usage and actuarial assumptions. These assumptions include a 5.00% annual return and a 3.00% annual salary increase. The Agency's sick leave benefit liability as at March 31, 2015 based on the valuation model is $70 (2014 - $70). The increase (decrease) in the sick leave benefit liability of $nil (2014 - $nil) represents the total sick leave benefit expense (recovery) for the year.



8. Tangible capital assets

2015

Opening Closing Balance Additions Disposals Balance

Cost Computer equipment $275 $4 $ - $279 Furniture and fixtures 165 - - 165 Leasehold improvements 882 260 - 1,142 Office equipment 64 - - 64 Production equipment 323 219 - 542 Rental equipment 11,487 998 (74) 12,411 Warehouse equipment 1,119 183 - 1,302

$14,315 $1,664 $(74) $15,905

Accumulated amortization Computer equipment $(238) $(7) $ - $(245) Fixtures (153) (9) - (162) Leasehold improvements (822) (41) - (863) Office equipment (64) - - (64) Production equipment (293) (27) - (320) Rental equipment (10,131) (902) - (11,033) Warehouse equipment (829) (76) - (905) Total accumulated amortization $(12,530) $(1,062) $ - $(13,592)

Net book value $1,785 $602 $(74) $2,313

During the year ended March 31, 2015, rental equipment with a net book value of $74 was sold for proceeds of $85 resulting in a gain on disposal of tangible capital assets of $11 included in total health equipment sales during the year (2014 - $nil).



8. Tangible capital assets (continued)

2014

Opening Closing Balance Additions Disposals Balance

Cost Computer equipment $598 $13 $(336) $275 Furniture and fixtures 164 1 - 165 Leasehold improvements 854 28 - 882 Office equipment 64 - - 64 Production equipment 288 35 - 323 Rental equipment 10,581 906 - 11,487 Warehouse equipment 1,075 44 - 1,119

$ 13,624 $ 1,027 $ (336) $ 14,315

Accumulated amortization Computer equipment $ (567) $ (7) $ 336 $ (238) Furniture and fixtures (143) (10) - (153) Leasehold improvements (797) (25) - (822) Office equipment (64) - - (64) Production equipment (288) (5) - (293) Rental equipment (9,224) (907) - (10,131) Warehouse equipment (774) (55) - (829) Total accumulated amortization $ (11,857) $ (1,009) $ 336 $ (12,530)

Net book value $ 1,767 $ 18 $ - $ 1,785

9. Designated assets

The Agency has allocated $412 (2014 - $412) of its portfolio investments as designated assets for cash received from the Province of Manitoba for vacation entitlements earned by employees of the Agency prior to its designation as an SOA and the severance pay benefits accumulated to March 31, 1998 for certain of the Agency’s employees. This amount is held in an interest bearing account until the cash is required to discharge the related liabilities. Any unused balance is re-invested annually.

10. Commitments

Rental agreement

The Agency leases space from the Province of Manitoba on a monthly basis for the following locations: 450 Broadway, Winnipeg, MB; 340 - 9th Street, Brandon, MB; and 25 Tupper Street, Portage La Prairie, MB. Occupancy charges for the year ended March 30, 2016 are estimated to be $10 (2015 actual - $10).

11. Transfer of funds to the Province of Manitoba

During the year ended March 31, 2015, with Lieutenant-Governor approval by Order in Council, the Agency transferred $200 (2014 - $200) of its surplus funds to the Province of Manitoba.



12. Financial instruments and financial risk management

The Agency does not have any significant financial instruments subsequently measured at fair value or denominated in a foreign currency therefore the Agency did not incur any remeasurement gains or losses during the year (2014 - $nil). Financial risk management – overview The Agency has exposure to the following risks from its use of financial instruments: credit risk; liquidity risk; market risk; interest rate risk; and foreign currency risk. Credit risk Credit risk is the risk that one party to a financial instrument fails to discharge an obligation and causes financial loss to another party. Financial instruments which potentially subject the Agency to credit risk consist principally of cash and cash equivalents, accounts receivable and portfolio investments.

The maximum exposure of the Agency to credit risk at March 31 is: 2015 2014

Cash and cash equivalents $ 1,045 $ 1,195 Accounts receivable 1,937 2,312 Portfolio Investments 512 412 $ 3,494 $ 3,919

Cash and cash equivalents and portfolio investments: The Agency is not exposed to significant credit risk as these amounts are held by the Minister of Finance. Accounts receivable: The Agency is not exposed to significant credit risk as the balance of the accounts receivable are primarily with other government agencies and departments. The balance is due from a large client base and payment in full is typically collected when it is due. The Agency manages this credit risk through close monitoring of overdue accounts. The Agency establishes an allowance for doubtful accounts that represents its estimate of potential credit losses. The allowance for doubtful accounts is based on management’s estimates and assumptions regarding current market conditions, customer analysis and historical payment trends. These factors are considered when determining whether past due accounts are allowed for or written off. The balance in the allowance for doubtful accounts as at March 31, 2015 is $65 (2014 - $65) with changes to the allowance for doubtful accounts during the year ended March 31 as follows:

2015 2014

Balance, beginning of the year $ 65 $ 93 Provision for receivable impairment - - Reversals of previously recognized impairments - (28) Amounts written off during the year - - Balance, end of the year $ 65 $ 65



12. Financial instruments and financial risk management (continued) The aging of accounts receivable and the related allowance for doubtful accounts at March 31, 2015 is as follows:

Accounts Receivable Allowance Net Current $ 1,819 $ - $ 1,819 30-60 days past the billing date 111 - 111 61-90 days past the billing date 57 (50) 7 90 days past the billing date 15 (15) -

$ 2,002 $ (65) $ 1,937

Liquidity Risk

Liquidity risk is the risk that the Agency will not be able to meet its financial obligations as they come due.

The Agency manages liquidity risk by maintaining adequate cash balances and by review from the Province of Manitoba to ensure adequate funding will be received to meet its obligations.

Market Risk

Market risk is the risk that changes in market prices, such as interest rates and foreign exchange rates, will affect the Agency’s income or the fair value of its financial instruments.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flow of a financial instrument will fluctuate because of changes in market interest rates. The interest rate exposure relates to cash and cash equivalents and portfolio investments.

The interest rate risk on cash and cash equivalents is considered to be low because of their short-term nature. The interest rate risk on portfolio investments is considered low as the original deposits are reinvested at rates for investments with similar terms and conditions.

Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The agency is not exposed to significant foreign currency risk as it does not have any significant financial instruments denominated in a foreign currency.

13. Comparative information

Certain of the amounts from the year ended March 31, 2014 have been reclassified to conform with the financial statement presentation adopted in the current year.


Schedule of Warehouse Sales and Service Revenue (in thousands) Years ended March 31, 2015 Schedule 1

2015 2014

Warehouse sales: Medical supplies $ 5,994 $ 4,945 Stationery 4,327 4,361 Furniture 618 544 Janitorial 2,189 2,270 Health equipment 1,072 575 Special projects 130 110 $ 14,330 $ 12,805

Service revenue: Disposal $ 36 $ 9 Manitoba Textbook Bureau 290 289 Freight 804 728 Moving 537 695 Storage 408 462 Vaccine program 583 543 Office equipment - copy centres 11 11 Mail services 5,541 5,284 Home care equipment rentals 3,583 3,406 Other income 213 167

$ 12,006 $ 11,594

Schedule of Operating and Administrative Expenses (in thousands) Years ended March 31, 2015 Schedule 2

2015 2014

Operating expenses: Amortization $ 1,062 $ 1,009 Bad debts (recovery) - (28) Copy centre 7 11 Equipment rentals 162 135 Freight 1,755 1,564 Mail services 4,322 4,090 Moving 402 536 Vehicle 130 119 Warehouse supplies 180 143

$ 8,020 $ 7,579

Administrative expenses: Computer $ 193 $ 245 Miscellaneous 14 12 Office 291 236 Professional fees 12 12 Promotion and marketing 50 64 SOAFA fees 2 2 Telephone 78 64 Training 11 4

$ 651 $ 639

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